What is the projects irr

Assignment Help Financial Management
Reference no: EM131328203

A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 156,000 1 60,000 2 79,000 3 63,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 15 percent, should the firm accept the project?

Reference no: EM131328203

Questions Cloud

What is sell the old-net of tax and buy the new value : The ABD company is considering the purchase of a new machine to replace an out of date machine that has a book value of $18000 and can be sold today for $2,000. The old machine is being depreciated on a straightline basis over 4 more years to a book ..
Discuss any demand-side or supply-side factors : Use demand and supply models to illustrate and explain the following: [Use the demand and supply model for a domestic market]: Discuss any demand-side and/or supply-side factors that can explain the recent change in the price of grapes
Perform modeling to assist with analysis and decision making : Perform modeling to assist with analysis and decision making. Effectively communicate with stakeholders to determine, manage, and document business requirements throughout the SDLC.
Identify-research a prominent new product-service failure : Every year hundreds of millions of dollars are spent marketing products (or services) that fail. Millions of dollars those companies would love to get back.Fortunately you happen to have a functioning time machine that you bought on Craig's list...
What is the projects irr : A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 156,000 1 60,000 2 79,000 3 63,000 What is the project's IRR?
Find the position of the image and its magnification : An object is placed 15cm from aconvex mirror of radius of curvature 60cm. Find the position of the image and its magnification.
Calculate the average collection period : Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate the average collection period (also called Days of Sales in Receivables or Number of Days of Credit)..
How would it change marketing strategy : Prepare your assignment beginning with a title page including your name, your product or service, and the name of your target market. The answer each of the following four questions in order and number the beginning of each question. There is no..
Is it possible tom will catch jerry in his life time : Use Adam-Bashforth Technique with your result from Runge-Kutta method as initial step to compute when will Tom catch Jerry. Suppose Tom's acceleration is unknown someone found did not catch Jerry in 2 minutes. Is it possible Tom will catch Jerry in ..

Reviews

Write a Review

Financial Management Questions & Answers

  Effective annual interest rate on this lending arrangement

Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $26 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed. Required: What is the ef..

  Determine the new number of shares outstanding in parts

Roll Corporation (RC) currently has 270,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:

  Construct a price-weighted index

You construct a price-weighted index of 55 stocks. At the beginning of the day the index is 8,710.44. During the day, 54 stock prices remain the same, and one stock price increases $5.40. At the end of the day, your index value is 8,757.89. What is t..

  Flotation cost percentage of funds provided by investors

Douglass Trucking issued 120,000 shares of stock last week. The underwriters charged an 8.5 percent spread in exchange for agreeing to a firm commitment. The legal and accounting fees amounted to $395,000. What was the flotation cost as a percentage ..

  Bondholders do well but shareholders see their value

In a typical LBO, bondholders do well but shareholders see their value decline. Firms are forbidden by law to sell any assets during the first five years following a leverage buyout. LBOs are never backed by private equity firms. d. LBOs typically us..

  Firm sells for cash only-it is thinking of offering credit

Your firm sells for cash only; but it is thinking of offering credit, allowing customers 90 days to pay. Customers understand the time value of money, so they would all wait and pay on the 90th day. To carry these receivables, you would have to borro..

  The existence of unemployment compensation

The existence of unemployment compensation most likely will cause less unemployment.

  Evaluating capital budgeting project

Depreciation methods Kristin is evaluating a capital budgeting project that should last for 4 years. The project requires $750,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelera..

  Assume that intel pays no dividends

Suppose that you sell short 200 shares of Intel, currently selling for $50 per share, and give your broker $6,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after..

  Ethics are an important aspect of corporate culture

Ethics are an important aspect of corporate culture. The tone at the top is part of what sets expectations for employees. Describe the tone at the top of your organization. If you were in charge, what would you do differently?

  Considering leasing arrangement to finance

NetFive Inc. is considering a leasing arrangement to finance some manufacturing equipment’s that is need for the next 3 years. The equipment’s will be obsolete and worthless after3 years. The firm will depreciate the cost of the equipment’s on the st..

  Callable preferred stock

There is a callable preferred stock at 110 par in 9 years, paying $4 annually and having a yield of 6%. Compute its price, if it is called. In case the issuing firm decides to not call it, what would its price be?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd